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Have you filed your annual returns only to find a balance of tax appearing on your KRA acknowledgement receipt? Understanding how to pay balance of tax on iTax is crucial to avoid late payment interests and penalties.
This comprehensive guide breaks down the process into five simple steps to help you settle your KRA balance of tax quickly and accurately.
What is Balance of Tax?
Balance of tax is the difference between the total tax liability for a year and the tax already paid through methods like PAYE (Pay As You Earn) or Withholding Tax.
If your total tax due is higher than what was deducted at the source, you must pay the remaining amount – the balance of tax KRA – directly through the iTax portal.
Prerequisites for Paying KRA Balance of Tax
Before you begin, ensure you have:
- Your KRA PIN.
- Your iTax Password.
- The specific amount you need to pay (usually found on your filed return acknowledgement receipt).
5 Steps to Pay Balance of Tax on iTax
Follow these steps to generate a Payment Registration Number (PRN) and settle your tax liability.
Step 1: Log in to the iTax Portal
Visit the official KRA website at itax.kra.go.ke. Enter your KRA PIN, click “Continue,” enter your password, solve the simple arithmetic (security stamp), and log in to your dashboard.
Step 2: Navigate to Payment Registration
Once logged in, hover your cursor over the ‘Payments’ tab on the top menu. From the drop-down list, select ‘Payment Registration.’ This will open the e-payment gateway.
Step 3: Enter Tax Payment Details
Your basic details (PIN, Name, and Address) will be auto-filled. Click “Next” to reach the payment details section. Fill in the following accurately:
- Tax Head: Select Income Tax.
- Tax Sub-Head: Select Income Tax – Resident Individual (or Non-Resident/Company as applicable).
- Payment Type: Choose Self-Assessment Tax.
- Tax Period: Select the relevant Year of Income (e.g., 2023).
- Amount Payable: Enter the exact balance of tax amount. Click ‘Add’ to include it in the payment summary.
Step 4: Generate the PRN (Payment Registration Number)
Choose your preferred mode of payment (e.g., Cash, Check, or M-Pesa) and click ‘Submit.’ A pop-up will ask you to confirm the details. Once confirmed, a Payment Registration Number (PRN) will be generated. Download and print this slip.
Step 5: Make the Payment via M-Pesa or Bank
You can now finalize the transaction using the PRN:
- Via M-Pesa (Most Convenient):
- Go to M-Pesa menu > Lipa na M-Pesa.
- Select Paybill and enter Business Number 222222.
- Enter the PRN as the Account Number.
- Enter the amount and your M-Pesa PIN.
Via Bank: Present the printed PRN slip at any KRA-appointed bank for payment.
Why You Must Pay Your Balance of Tax on Time
Failing to settle your balance of tax by the deadline (usually April 30th for the previous year) attracts a 5% penalty on the tax due and a further 1% monthly interest. Regularly checking your KRA balance of tax ensures you remain compliant and avoid unnecessary costs.
Matthews Ohotto is an Article Writer at CYBER.CO.KE and a Video Creator at the YouTube channel Taxpayer Tutorials. He specializes in writing helpful Articles and creating informative Videos that empower Kenyans with practical skills and knowledge. He holds a Bachelor’s Degree in Business Information Technology (BBIT) from Jomo Kenyatta University of Agriculture and Technology (JKUAT).
